Comparing a 3.28% 10-year fixed mortgage quote in Copenhagen

Y

yara.ridge

Homeowner
Getting the comparison period wrong could make the cheaper-looking mortgage cost more in practice. I have been quoted 3.28% with a 10-year fixed period for a Copenhagen property priced at about DKK 6,439,000, but the fees and loan-to-value band materially affect the offer.

Would you compare lenders using the cash paid over the years you expect to keep the loan, with APR only as an initial filter? I need the monthly payment to remain comfortable, and I also want to price the consequences of moving, repaying early or keeping the mortgage for the full ten years. What figures should I request so each lender is being assessed on the same basis?
 
I would compare total cost over the period you might realistically keep the loan, not automatically the full ten years. APR is useful for screening, but it can hide differences in assumptions. Ask every lender to calculate the same loan amount, loan-to-value and repayment schedule, then show fees, monthly payments and the cost of exiting at several dates. Is DKK 6,439,000 the purchase price or the amount borrowed?
 
It is the purchase price, not the loan amount. Your point about using identical assumptions is probably where my first comparison went wrong. I’m going back for itemised figures at the same loan-to-value and will compare both five- and ten-year horizons, including the balance remaining at each point.
 
Be careful with “total cash cost” as well. Two loans can require similar cash outlay while leaving different outstanding balances, so fees plus interest and the ending principal need to be viewed together. I would also give early repayment more weight than portability unless the lender explains exactly when and how portability applies. The contractual wording matters more than the label.
 
A simple table should settle most of this: initial fees, monthly payment, interest paid, principal repaid, balance after five and ten years, and exit cost at those dates. Add a separate affordability test for the payment after the fixed period under less favourable rates; otherwise the refinance assumption is doing too much work. Any unclear repayment or portability wording should be confirmed directly with the lender for this Danish loan.
 
You must log in or register to reply here.
Back
Top